Yahoo! News PT.com, the Internet subsidiary of the wireline division of Portugal Telecom Group (NYSE: PT - News; visit www.telecom.pt), and Xten Networks, Inc. (OTCBB: XNWK - News), a provider of VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP softphones, today announced today that PT.com has entered into software licensing agreement with Xten. Under the terms of the agreement, PT.com has licensed Xten's eyeBeam SDK to develop a softphone application for integration and deployment with the PT.com Broadband Service (SAPO ADSL). "In the last months, we have been working rather intensively in finding VoIP solutions that will answer the present and future needs of our clients. We believe that this solution with Xten's trademark is the best way to proceed and succeed in the future," stated Manuel Rosa da Silva, an Executive Board Member of PT. "This partnership signifies another carrier win for Xten," stated Erik Lagerway, president and chief operating officer of Xten Networks. "We are very happy to have been chosen by PT to power their new IP communications soft client and eagerly await their upcoming product launch." Xten's softphones for Windows, MAC OS X, Pocket PC and now Linux are software applications, which run on devices such as personal computers (PCs) or personal digital assistants (PDAs) or can be integrated into set-top boxes, embedded devices, instant messenger applications and alike. When an Xten softphone is connected to a service provider's network, the user can make and receive calls to and from other "on-net" callers (IP-to-IP) and/or "off-net" callers (IP-to-PSTN/Cellular) with the same quality of service they would expect from an IP handset. However, at a fraction of the cost, while providing more features and functionality than an IP handset. About PT.com PT.com is the internet branch of the wireline division of Portugal Telecom Group. PT.com is the leading internet provider (ISP) in Portugal with more than 400.000 costumers and the leading internet brand in terms of spontaneous recognition in Portugal (with the SAPO brand). PT.com also has an important Portal business (www.sapo.pt, the leading portal in Portugal), that provides internet users with several contents and services, namely: broadband content (live TV feeds, music downloads and content, sports information, ...), Email, Blogs, Homepages, SMS & MMS, Instant Messaging and a lot more... About Xten Networks Xten Networks is a developer of award-winning, high-quality, carrier-grade VoIP (Voice over IP) and Video over IP SIP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. Xten's SIP softphones are available either pre-configured or as a software development kit (SDK), and provide VoIP (Voice over IP), Video over IP, IM (Instant Messaging), and Presence functionality. eyeBeam - Xten's feature-rich SIP Video over IP softphone with IM and Presence - recently received both Communications Solutions® Magazine's and INTERNET TELEPHONY® Magazine's "Product of the Year" Award for 2004. Through deployments with leading service providers, Xten technology is deployed in more than 5,400,000 IP endpoints worldwide. For more information please visit http://www.xten.com. For more information on Xten, please contact Investor Relations - KCSA Worldwide: Todd Fromer +1.212.896.1215 tfromer@kcsa.com Michael Cimini +1.212.896.1233 mcimini@kcsa.com For more information on Xten products, please contact Media Relations: Tiffany Zinck +1.604.628.2127 pr@xten.com